PepsiCo tipped to hand Tropicana work to HTA

NEW DELHI: Beverage titans PepsiCo and Coca-Cola are on the verge of making major advertising decisions in India and it appears that the spoils will be shared between Interpublic (IPG) and WPP agencies.

The accounts under consideration are PepsiCo's Tropicana and Coca-Cola's flagship brand Coke.

Following a global reshuffle of its agency roster last year, PepsiCo is tipped to drop FCB Ulka on its fruit juice brand Tropicana. Last September, PepsiCo shifted its US$350 million Gatorade, Aquafina and Tropicana orange juice assignments out of FCB globally and into the Omnicom group.

PepsiCo's subsidiary Tropicana Beverages Company is now expected to sign up with WPP Group's Hindustan Thompson Associates (HTA), which handles PepsiCo's entire range of aerated drinks in India.

According to industry sources, HTA is already preparing for the Tropicana account, which is estimated to be worth more than US$1.8 million in annual billings.

A strong relationship between PepsiCo and HTA in India has been cited as the major reason for the allotment of the Tropicana account to India's leading agency, HTA.

The Omnicom affiliate agencies in India are Mudra Communications, RK Swamy/BBDO Advertising and TBWA Anthem.

Considering the increase in demand for non-carbonated drinks in the Indian market, PepsiCo has set a target of US$16.6 million turnover for Tropicana this year. Tropicana's rival in India includes local brand Real, with a market share of nearly 55 per cent.

Coca-Cola India has also reviewed its advertising account and has decided to stick with its agency McCann-Erickson rather than move to Ogilvy & Mather, which won its Fanta and Sprite brands following the global realignment last year. Billings for Coke is estimated at US$12.5 million, representing nearly 21 per cent of Coca-Cola India's entire ad budget.

Sripad Nadkarni, vice president marketing of Coca-Cola India, confirmed the review, but said that McCann would continue to work on its flagship brand and mineral water account, Kinley.

However, Coca-Cola has decided to award its new tea and coffee accounts to Leo Burnett, which will assist from conceptualisation to launch of the products in the relatively new segment of ready-to-drink tea and coffee.

Coca-Cola also also added two other agencies, Lowe India (for aerated drink Rimzim to be launched in southern cities) and Triton Communications (for aerated drink Portello to be launched in Mumbai), but only on a regional basis to its roster.